Banks holding authorized dealers' licenses (i.e. Banks authorized to
deal in foreign exchange or banks specifically authorized in this behalf
by Reserve Bank can only maintain accounts in the names of NRIs. Certain
Co- operative/commercial banks (referred to as authorized banks) have
been specifically permitted to maintain accounts of NRIs expressed in
rupees even though they are not authorized dealers.

Accounts can be maintained by NRIs in rupees as
well as in foreign currency. Accounts in foreign currencies can, however,
are maintained with authorized dealers only.

Rupee AccountsNRO and NRE accounts can be maintained in current/savings/ fixed deposit
form while NRNR accounts can be only in fixed term deposits.

Balances held in NRE accounts can be repatriated abroad freely, whereas
funds in NRO account cannot be remitted abroad but used only for local
payments in rupees. Consequently, funds remitted from abroad or local
funds which can otherwise be remitted abroad to the account holder can
only be credited to NRE accounts. Funds which do not qualify, under the
Exchange Control regulations, for remittance outside India are required
to be credited to NRO accounts.

Foreign Currency Accounts
Accounts in foreign currencies (FCNR accounts) can also be maintained by
NRIs with authorized dealers in India. FCNR Accounts permitted to be maintained
in Pound Sterling, U.S. Dollar, Deutsche Mark and Japanese Yen. Authorised
dealers maintaining these accounts would allow repatriation abroad of these
funds.